Fair Housing
A NC mortgage lender who uses different underwriting criteria for borrowers in predominantly minority zip codes has likely engaged in:
AAcceptable geographic risk assessment
BReverse redlining or discriminatory underwriting that may violate ECOA and FHA✓ Correct
CA permitted risk-based pricing model
DHMDA-required geographic analysis
Explanation
Using different underwriting standards based on the racial composition of a neighborhood is a form of redlining or discriminatory underwriting, violating both ECOA and the Fair Housing Act.
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